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More on Social Security COLA Implications and Consequences
Now that the excitement of Social Security’s 2024 cost-of-living adjustment (COLA) announcement is waning, the smoke is clearing on how the process works–or doesn’t–and what the tax implications are for beneficiaries in 2024. First, a post by The Motley Fool’s Kailey Hagen on their website takes a look at three commonly misunderstood aspects of the COLA process, including the fact that it’s not guaranteed, the mathematical reality of inflation and its relationship to COLA, and the finally the potential for more seniors to be pushed past the thresholds for federal tax on their benefits. A second article, this by GoBankingRates’s Adam Palasciano, dives deeper into the “negative tax surprise” accompanying the additional income.
If, after reading these posts, you have any questions about your situation with respect to Social Security, know that the AMAC Foundation offers a free-to-the-public Social Security Advisory Service to help seniors navigate the complexities of this benefit program. Learn more about this service here.